The former Hedge fund manager, Mike Novogratz, has once again advised investors to up their investment in Bitcoin and other altcoins. The 56-year old has always been an advocate of Bitcoin because he envisions a future with only crypto wallets as accounts. This might be likely due to the increased currency adoption by many investors in the space, and banks might have not a choice but to fully infuse it into the banking system.
Mike reveals how he invested 50% of his net worth in cryptocurrency
The CEO declared that he had invested 50% of his total net worth into the digital asset. The Galaxy Digital founder has thrown in more encouragement for investors and advised them to increase their investment into up to 5% of their total net worth. He made these reports during a session with Julia Chatterley on Tuesday. Mike has been increasing his investment suggestion over the past few months. The last time, when he asks a 3% investment into cryptocurrency, he told investors to be careful when dealing with crypto, primarily because of its volatility.
From his current investments, Mike is a risk-taker and will continue to invest more money into crypto as time goes, according to him. When Mike started his investment suggestions, he first advised only 1% of one’s net worth to be invested into the digital assets, however, as time went, he later upped his suggestion to a 3% and issues an adequate warning to investors to reduce the risks associated with the volatile asset. It’s safe to note that when the 3% suggestion was made, bitcoin was worth more than $19,000 in exchanges.
Why new investors should invest up to 5% of their net worth into Bitcoin
He suggests new investors put up to 5% and was confident that Bitcoin’s worth could not drop to zero. Mike understands the volatility of the currency, and he also said the worth of Bitcoin could drop to a $14,000 range and said that some money could be lost due to instability in prices, but sure that not all of the money would be lost. The current adoption by institutional investors and the mainstream made Mike suggest that adoption was accelerating. The Bitcoin advocate sees Bitcoin as the new gold and has spoken about his strong preference for the digital asset against the precious stone.
The father of four is one of the first to believe the current technology is paving the way for the future of the banking system and that financial systems would integrate the digital assets due to their widespread adoption. Even with the fall and rise of Bitcoin prices, 2020 is a good year for the cryptocurrency, and it has hit many new all-high records.
Recently, MicroStrategy revealed its new plans of selling convertible notes to investors and using the proceeds to buy $400 million worth of Bitcoin. If the company eventually defaults in returns to the investors, the notes will be converted to shares of the company, and investors would become shareholders. The proposal suffered several backlashes due to the company’s plan in investing in an unstable currency. MicroStrategy is an example of the big institutional buyers coming into the cryptocurrency space and changing the game.